Development Contributions

Contents

House under construction.

We expect our district will continue to grow at a moderate rate over the next 10 years. This may be population growth, visitor growth, growth in the number of households and intensification of economic activity. As a result of growth, more demand is placed upon our key infrastructure - roads, water supply, and wastewater disposal.

Development Contributions and Financial Contributions Policy

Council reviews their Development Contributions Policy every three years as part of the Long Term Plan.  With this, the 2018 Development Contributions Policy has been adopted, and is effective from 1 July 2018.

Any application submitted with all required information on or after 1 July 2018 will be subject to

2018 Development Contributions and Financial Contributions Policy (PDF, 2 MB) 

The 2018 Policy is an update of the 2015 Policy. There have been some key changes to the policy which are listed below:

  • The structure of the policy has been modified to provide a more customer-centric policy.
  • The standard updates have been made to the policy including the application of actual capital expenditure over the past three years and inclusion of the latest LTP capital budgets.  In most areas, these updates have resulted in increases in the development contribution.  Most noticeably in water and wastewater due to higher costs budgeted for treatment upgrades.
  • The timing of payment has been simplified to provide greater administrative efficiency and provide certainty for developers.
  • The roading development contributions for non-residential developments have been altered to provide a more appropriate allocation of the growth costs.
  • Additional land use categories for campgrounds and retirement villages have been added to the policy to provide simpler administration of the policy.
  • The remission for additional residential dwellings on dairy farm developments has been removed.  The development contribution for a dairy farm includes just the additional demand created by the change in land use and excludes any additional residential activity. 

Why do we charge Development Contributions?

Development Contributions help pay for new infrastructures - such as roads and water supplies, or help us upgrade current infrastructure assets to cater for extra demand. Our Development Contributions are calculated so that the people who benefit from the development pay their fair share without extra burden on ratepayers who have already paid their share.

Land use

We have calculated Development Contributions in different ways depending on the type of development. There are different charges for residential developments, commercial developments, rural-residential developments, industrial, accommodation and dairy farm conversions.

Under "accommodation" a family flat or ‘granny flat’ defined as self-contained living accommodation, whether contained within a residential unit or located separately to a residential unit on the same site, which is occupied by a family member who is dependent in some way on the household living in the residence will incur a development contribution. Self-contained living accommodation means having its own kitchen and bathroom facilities including an oven or a stove and a toilet and a bath or shower.

Reductions or waivers of Development Contributions

There are certain situations when a Development Contribution does not have to be paid in full. These include:sub division land.

  • 50% reduction on the roading contribution for each new residential, rural-residential or accommodation development
  • 50% reduction on the Ohau water supply for any Ohau properties paying a water half-charge
  • 50% reduction on Moeraki wastewater for any Moeraki properties paying a wastewater half-charge

There are other instances when a reduction may apply or a refund may be given. Go to the ‘Reconsiderations and Objections’ section to find out more. If you believe you are entitled to a reduction in your Development Contribution, please contact us at service@waitaki.govt.nz or call 03 433 0300.

When payment needs to be made

We expect payment before we issue certain certificates or before a supply connection is made. Payment will be required for all development contributions (water supply, wastewater and roading) as follows. For the purpose of this section, the following definitions apply:

  • Residential development includes the following land uses; residential, rural residential, family flat.
  • Non-residential development includes the following land uses; accommodation, retirement village, campground, primary industry-dairy, commercial and industrial.

  • Resource consent (subdivision) at the time of applying for an s224(c) certificate.
  • Where the full development contribution has not been paid at resource consent stage, then development contributions will be payable at building consent or service connection.

  • Where a building consent will be required for a development, no contribution will be sought at any initial stage resource consent stage.  The full development contribution will be required at building consent.
  • Where a building consent will not be required (eg land use consent), then a development contribution will be assessed at resource consent stage.

For subdivision consents, the development contributions invoice will be sent at the time the certificate under s224(c) is applied for.  For land-use consent, building consents, or service connection, the development contribution invoice will be sent when these consents are granted.

This approach is considered more efficient to administer as a single contribution is levied at a single stage.  In the case of non-residential development, the information at building consent stage provides more certainty about the nature and size of the development.  This provides developers and applicants with greater certainty.

Deferred payments

We may agree to enter into a deferred payment arrangement by request under certain circumstances. We will review deferred payment arrangements on a case-by-case basis but please contact us as soon as possible so that a possible deferred payment can be investigated.

Credits

There are two types of credits anticipated:

  1. Actual credits will apply to those subdivisions or developments where contributions have been paid under this or a previous policy.
  2. Existing activities will be given credit based on the Household Equivalent Units (HEU’s) assessed in terms of the relevant unit (ie GFA, dwelling, accommodation units) prior to redevelopment.  A development contribution will only be levied if the redevelopment creates additional demand.

Where a business activity or dwelling relocates from one site in the district to another site in the district, credits are not transferable to the new site.  Any credit will remain with the original site until such time as service connections are removed.

Reconsiderations and objections

You are entitled to ask Council to reconsider a Development Contribution. This must be done within 10 working days after receiving the Development Contribution notice. A request for reconsideration may be lodged if you believe that:

  • The Development Contribution was incorrectly calculated or assessed under the Policy; or
  • The Council incorrectly applied its Development Contribution Policy; or
  • The information used to assess your development against the Policy, or the way the Council has recorded or used it when requiring a Development Contribution, was incomplete or contained errors.

The request must be in writing and sent to: Corporate Development Officer, Waitaki District Council, Private Bag 50058, Oamaru 9444 or email your request to service@waitaki.govt.nz .

The steps that Council will apply when reconsidering the requirement to make a development contribution are:

  • The appropriate Council officer shall review the reconsideration request.
  • The Council officer may request further relevant information from the applicant.
  • The Council officer will make a recommendation in a report for consideration by the delegated authority.
  • Council will, within 15 working days after the day one which it receives all required relevant information relating to a request, give written a notice of the outcome of its reconsideration to the person who made the request.

Process for an objection to a development contribution assessment

If you wish to take the matter further you can formally object and Council will refer the matter to an independent Development Contributions Commissioner. You will be charged for the associated costs.

An objection may only be lodged on the grounds specified in section 199D of the Local Government Act  (LGA): 

  1. The Council failed to properly take into account features of the objector's development that, on their own or cumulatively with those of other developments, would substantially reduce the impact of the development on requirements for community facilities in the Councils district or parts of that district.
  2. The Council required a development contribution for community facilities not required by, or related to, the objector's development, whether on its own or cumulatively with other developments.
  3. The Council required a development contribution in breach of section 200 of the LGA.
  4. The Council incorrectly applied its Development Contribution Policy to the objector's development.

An objection must be made within 15 working days after the date of receiving notice of the level of development contribution or the date on which the person receives notice of the outcome of reconsideration.

The objection must be lodged in writing; set out the grounds and reasons for the objection; state the relief being sought; and state whether the objector wishes to be heard on the objection. 

Please note: The full cost of the hearing, including administration and Commissioner costs associated with the objection process to be paid by the applicant under the Local Government Act 2002.

Refunds

We may allow a refund to be made when a Development Contribution has been paid but the development has not gone ahead. We may, however, retain a portion of the contribution should we have incurred some administration costs. 

Applications for refunds must be made in writing and sent to The Chief Executive, Waitaki District Council, Private Bag 50058, Oamaru 9444. Alternatively, an application can be emailed to service@waitaki.govt.nz. ​​

Page reviewed: 28 Jun 2018 12:22pm